Beijing Kingsoft Office (688111.SS)

Technology · Shanghai · China

CN¥237.00+10.08% today

Fundamentals

Market capCN¥108.47B

P/E ratio29.9

Dividend yield0.53%

Revenue growth (YoY)+24.0%

Profit margin58.1%

Return on equity26.9%

52-week rangeCN¥200.00 to CN¥415.00

Valuation and ratings

DCF fair valueCN¥300.69

Upside to fair value+26.9%

Moat score95/100

Overall rating81/100, Strong Buy

Beijing Kingsoft Office trades at CN¥237.00, which is 27% below the CN¥300.69 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 95 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 29.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Beijing Kingsoft Office

Beijing Kingsoft Office Software, Inc. provides office software products and services in China and internationally. It offers WPS Office for Windows, Mac, Android, iOS, Linux, HarmonyOS, Enterprise PC version, and Enterprise Mobile Version; cloud office products comprising Kingsoft Docts, WPS Collaboration, WPS Email, WPS Calendar, and WPS Meeting; and other products, including WPS AIPPT, WPS Browser Assistant, WPS PDF Standalone Version, WPS PDF Professional Edition, Kingsoft PowerWord, Kingsoft PowerWord Enterprise Edition, WPS Dark Horse Proofreader, and Kingsoft Typing Tutor. The company was founded in 1988 and is based in Beijing, China. Beijing Kingsoft Office Software, Inc. operates as a subsidiary of Kingsoft Wps Corporation Limited.

Industry: Software - ApplicationEmployees: 6,048HQ: China

688111.SS passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

High margin machines

Companies that keep an unusually large share of every pound they sell. That is pricing power made visible.

Growth at a reasonable price

Real growth, without the multiple that usually comes attached to it. The middle ground between value and growth, and the hardest place to find anything.

Common questions

Is Beijing Kingsoft Office (688111.SS) undervalued?

Against our discounted cash flow estimate of CN¥300.69, 688111.SS at CN¥237.00 is 27% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is 688111.SS's P/E ratio?

688111.SS trades at 29.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for 688111.SS, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open 688111.SS in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.